Pune market 2014 real estate heroes v2

Pune market 2014 real estate heroes v2

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  Real Estate MarketReport PUNE 2014 Contact: BM Poonacha Real Estate Heroes 287, 1st main, Defence Colony, Indiranagar, BANGALORE 560 008 INDIA +91 9449073566 poonacha@realestateheroes.in 4/12/2014 REAL ESTATE HEROES
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  PUNE 2014 Real Estate Market Report Poweredby 1 CONTENTS 1. Preface...................................................................................................................................... 2 2. Pune City................................................................................................................................... 3 Overview........................................................................................................................................... 3 SWOT Analysis: Pune ....................................................................................................................... 4 Upcoming Infrastructure Developments ............................................................................................. 5 Pune Positioning ............................................................................................................................... 6 3. Pune Urbanisation ..................................................................................................................... 7 3.1. Urban Transformation................................................................................................................ 7 3.2. Urban Prognosis........................................................................................................................ 8 3.3. Spatial Growth ........................................................................................................................... 9 4. Real Estate Micromarkets........................................................................................................ 10 4.1. Residential............................................................................................................................... 10 4.2. Commercial ............................................................................................................................. 11 4.3. Integrated Townships............................................................................................................... 12 5. Market Outlook 2014................................................................................................................ 13
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  PUNE 2014 Real Estate Market Report Poweredby 2 1. PREFACE This Information Memorandum on Pune has been prepared after research from various sources, urban development plans, historical data, market news and expert analysis. The document has been prepared to cover the following aspects:  Knowledge of Competition  Historical Transformation  Reviewing Market Trends  Market Outlook and Forecasts  Market Insight on Valuations  Distribution of Asset Classes across Micromarkets  Asset Class Product Positioning  Infrastructural Focus  Growth Corridors  Economic Factors Most of all this report intends to aid in an “Informed” Decision Making
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  PUNE 2014 Real Estate Market Report Poweredby 3 2. PUNE CITY OVERVIEW Pune is a plateau city situated near the Western margin of the Deccan plateau and a city of historical eminence. Ranked as Gamma Global City, it is an important economic center, second to Mumbai in Western India and currently an expanding metropolis which makes it one of the most emergent among all cities of India. The temporal evolution of Pune originated from a tiny agriculture settlement called ‘Punnaka’ in the 8th century. Pune noticed significant growth under the rule of Peshwas, after which it became a municipality in 1858 and a municipal corporation in 1950. The Pune Urban Agglomeration (PUA) has an estimated population of 6 million brought about by large influx of population due to 3 Significant Sectors.  IT & ITeS  Automobile & Engineering  Education
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  PUNE 2014 Real Estate Market Report Poweredby 4 SWOT ANALYSIS: PUNE Strengths Weaknesses Opportunities • Second Significant Urban Center after Mumbai in the West • Excellent Connectivity to other cities: Rail & Road • Established Engineering, Education and ITeS Hub • Pune comes in the DMIC influence zone • Spatial Growth opportunities exist • Emerging Market which is incubator for various Businesses & Services Sector • Enormous Strain on Urban Infrastructure Threats • Fully Independent Aviation Operation still underway • Competition from neighboring Urban Centers especially Indore, Nashik and Hyderabad • Rapid urbanization poses threat to environment and overpopulation unless If counter magnets are not developed simultaneously
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  PUNE 2014 Real Estate Market Report Poweredby 5 UPCOMING INFRASTRUCTURE DEVELOPMENTS  Pune Food Cluster development project at various locations of Pune, funded by the World Bank with the help of SIDBI.  Pune Metro  Pune International Exhibition and Convention Centre (PIECC) on an area of 239 hectares expected to be completed in 2017 developed by the Pimpri-Chinchwad New Town Development Authority.  170-kilometre Ring Road which encompasses Pune City and Pimpri Chinchwad.  The 4 laning of the Pune Solapur section of NH 9
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  PUNE 2014 Real Estate Market Report Poweredby 6 PUNE POSITIONING Pune is strategically located and is well accessible from a number of cities in West, Central and South India most of which are well connected by Rail, Road and Air. Following three National Highways pass through Pune District: NH4 (Mumbai-Bangalore): The NH-4, passes through the following places in the district: Khandala, Lonavala, Talegaon, Chinchwad, Pune and Khed-Shivapur. It enters the district from Khopoli (Dist. Raigad) at Khandala (Tal. Maval) and exits from Sarole (Tal. Bhor) in Pune disrtict and continues further towards the Satara district. The total length of NH-4 in the district is around 120 km. NH9 (Pune-Hyderabad) The NH-9 starts at Pune and passes through Loni, Bhigwan and Indapur. NH-9 ends in the district at Hingangaon (Tal. Indapur) and continues towards the Solapur district. The total length of NH-9 in the district is around 152 km. NH50 (Pune-Nashik) The NH-50 originates at Pune and passes through Chakan, Rajgurunagar, Manchar, Narayangaon and Alephata, which ends at Alekhind (Tal. Junnar) and continues further towards Sangamner in the Nashik district. The total length of NH-50 in the district is around 95 km. Pune Urban Agglomeration Mumbai IndoreNashik Bangalore Nagpur Hyderabad Pune Intercity Distance (Kms) Mumbai 163 Indore 624 Nashik 202 Bangalore 841 Nagpur 705 Hyderabad 558
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  PUNE 2014 Real Estate Market Report Poweredby 7 3. PUNE URBANISATION 3.1. URBAN TRANSFORMATION The urban area of Pune was hardly 5 sq. km. in 1818 and now it stands at about 700 sq. km., with the total area of the Pune metropolitan region currently covering 1605 sq. Km. Provisional data of the Census 2011 shows that 5.7 million people live in Pune metropolitan area. Industrialization in Pune began in the early 1960’s with the establishment of industrial estates in Pimpri – Chinchwad and was further boosted with the arrival of IT and multinational companies in the last decade. Figure: Chronological Development of Pune 1820 -2011, Source: Town Planning Department, Pune- 2011
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  PUNE 2014 Real Estate Market Report Poweredby 8 3.2. URBAN PROGNOSIS The probability map of urban growth of Pune by 2030 shows that the chances of Pune’s expansion towards the North and East direction may be higher than the other directions. This may be due to the presence of the Western Ghats in the South and West direction. Road influenced growth may be much higher along the NH-9 and SH-27 than the NH-4 towards the Bangalore. Figure: Probability map 1 of urban growth of Pune by 2030 Rural areas in Urli Knanchan, Wagoli, Rahu and Talegoan Dhandhere revenue areas might be the main centers of attraction for Pune urbanization in the future; this may be due to presence of Pune- Ahmednagar State Highway (SH-27), Pune-Hyderabad National Highway (NH-9) and greater availability of flat ground compared to the West and South sides of Pune. Non built-up land in the rural areas of Hadapsar, Kothurud and Thergaon revenue areas might be converted in to builtup areas by 2030. 1 Source: International Journal of Geomatics and Geosciences, Volume 2 Issue 2, 2011
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  PUNE 2014 Real Estate Market Report Poweredby 9 3.3. SPATIAL GROWTH Pune has been able to expand spatially by way of inclusion and urbanisation of its peripheral villages. This has served to decrease pressure on the core city by way of a radial urbanization pattern. The City has already witnessed massive growth towards Pimpri-Chinchwad areas where the Development Plas are in place. Eastwards on Solapur Road up to Loni Kalbhor will also see major development. The growth direction of PMC is envisaged towards the present growth along Hinjewadi, PCMC and Hadapsar. The growths are triggered mainly by IT industry in Hinjewadi, automobile industry in PCMC and BPO, IT and manufacturing industry in Hadapsar. The growth corridors mainly pass through North, West and East direction. Southern side of PMC contains hilly area where growth is not favorable. There is restriction of growth in the Northeast due to the presence of Airport funnel area. Pune city also has its own limitation for growth; having Pimpri-chinchwad on its north-west direction with some part of the boundary almost touching each other restricts spatial growth of city in this direction.
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  PUNE 2014 Real Estate Market Report Poweredby 10 4. REAL ESTATE MICROMARKETS 4.1. RESIDENTIAL Eversince, major expressways and highways rather growth corridors shaped Pune’s geographical territory. Areas like Baner, Pimple Saudagar, Wakad, Kharadi, Warje etc. emerged as the new gold mines on Pune’s realty scene. Major Micromarkets North Pimpri, Nigdi, Moshi, Dighi. Chinchwad, Akurdi, Pradhikaran, Talegaon, Chakan, and Ravet Central Bund Garden Road, Koregaon Park, Deccan, Kothrud, Swargate, Bhosale Nagar, Deccan, Model Colony, Prabhat Road, and Shivaji Nagar South Warje, Katraj, Kondhwa, NIBM Road, Undri, Ambegaon, Katraj, Kondhwa, Parvati, Salisbury Park, Sinhagad Road, Mohammadwadi, and Warje East Kalyani Nagar, Yerwada, Viman Nagar, Kharadi, Wagholi, Hadapsar, Koregaon Park, Boat Club West Aundh, Baner, Bavdhan, Wakad, Ravet, Balewadi, Hinjewadi, Kothrud, Pashan, Pimple-Saudagar, and Wakad. Focus Micromarkets Baner Aundh Sample Emergence After Aundh started saturating, Baner emerged as a natural growth area. Additionally it is located at the entry point to Pune close to Mumbai-Pune Expressway Baner is also located along the Mumbai-Bangalore highway Due to its proximity with Hinjewadi IT Park it became significant Typical Asset Classes Baner quite remarkably developed a Hi-End social profile and is the preferred location for Hi End Residential properties Mixed Class Housing Access Easy access to the city via Ganeshkhind Road Market Characteristics Highest appreciation for high- end properties
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  PUNE 2014 Real Estate Market Report Poweredby 11 4.2. COMMERCIAL As is with most Indian Cities Pune developed with a radial profile with Government offices (Pune Municipal Corporation,Passport Office, Registrar of Companies, Town Planning and Valuations Department to name a few), District court and hospitals all are located centrally in the old city area. Accessing any residential catchment area is very easy as it is centrally located and well connected. Districts Micromarkets CBD Laxmi Road, Camp, Bund Garden Road, Boat Club, Koregaon Park, Wakdewadi, Shivaji Nagar and Senapati Bapat Marg SBD – I Karve Road, Deccan Gymkhana, FC Road, Jungli Maharaj Road, Ganeshkhind Road, SB Road, Wakdewadi SBD – II Yerwada, Kalyani Nagar, Airport Road SBD – III Kondhwa, NIBM, Wanowrie, Hadapsar SBD – IV Mundhwa, Viman Nagar, Kharadi, Nagar Road SBD – IV Aundh, Baner, Pimpale Nilakh, Pashan, Sus, Bavdhan, Pimpri PBD – I Hinjewadi, Wakad, Talegaon PBD – II Saswad Road, Sholapur Road, Phursungi New Commercial Micromarkets which are emerging are split between two choices primarily: Preference Factor East Pune Airport West Mumbai expressway.
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  PUNE 2014 Real Estate Market Report Poweredby 12 4.3. INTEGRATED TOWNSHIPS As per the Special Township Policy Act of the Maharashtra government, a minimum area of 100 acre, investment in public infrastructure, such as roads, water, and sewage is required for development of townships. Following is the list of significant Township Projects in and around Pune at various stages of their existence. Township Developer Land Area Gross Development Value (as at inception) Location Project Status Magarpatta City Magarpatta Township Development and Construction Company Limited 400 Acres INR 4000 Crores Hadapsar Existing Lavasa HCC 25000 Acres INR 50,000 Crores Pune District Partially Operational Oxford Knowledge City Oxford Pvt Ltd. NA NA Lavle Partially Operational Defence City Defence City Developers 226 Acres NA Wagholi Ongoing Amanora Park Town City Development Corporation 400 Acres INR 10,000 Crores Hadapsar Ongoing Forest Trails Paranjape Schemes 138 Acres INR 3,200 Crores Bhugoan Ongoing Blue Ridge Pegasus Properties (ABIL) 150 Acres INR 1,500 Crores Hinjewadi Ongoing KUL Ecoloch Kumar Builders 124 Acres NA Baner Ongoing KUL Nation Kumar Builders 110 Acres NA Kharadi Ongoing Life Republic Kolte Patil & ICICI Ventures 450 Acres NA Hinjewadi Ongoing Nanded City Magarpatta Township Development and Construction Company Limited 700 Acres INR 9000 Crores Nanded Ongoing Palace Gardens HIRCO NA NA NA Upcoming
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  PUNE 2014 Real Estate Market Report Poweredby 13 5. MARKET OUTLOOK 2014  IT and ITeS to be the dominant driver  Occupier Interest among all asset classes follows  Peripheral Micromarkets and Exurban areas to witness most growth  Activity Areas will be the East and West due to land availability, intra-city connectivity and Infrastructural facilitation  Lot of anticipations from this market compared to all metros